Travel Food Services Limited (TFS) has announced a significant expansion of its food and beverage operations at one of India's busiest airports. The company's wholly-owned subsidiary, TFS Gurgaon Airport Services Private Limited, has entered into a license agreement with Delhi International Airport Limited (DIAL) to operate multiple F&B outlets at Terminal 2 of Indira Gandhi International Airport, New Delhi.

Key Details of the Agreement

Financial and Operational Implications

The agreement includes provisions for license fees, minimum guarantee amounts, and other related charges, as per the terms of the license agreement. While specific financial details have not been disclosed, the operation of 14 F&B outlets at a major international airport terminal represents a significant business opportunity for TFS.

Corporate Governance and Compliance

TFS has promptly disclosed this development in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that this agreement does not fall under related party transactions, and there is no involvement of the promoter or promoter group in the entity awarding the contract.

Market Impact

This strategic move by TFS could potentially strengthen its position in the airport F&B sector, capitalizing on the high foot traffic and captive audience at one of India's premier international airports. The three-year duration of the license provides a stable platform for TFS to establish its brand presence and potentially drive revenue growth in the coming years.

As the travel and hospitality sectors continue to recover and grow post-pandemic, such strategic partnerships between airport operators and specialized F&B service providers are likely to play a crucial role in enhancing passenger experience and driving non-aeronautical revenues for airports.

Investors and market watchers will be keen to observe how this expansion impacts TFS's financial performance and market position in the coming quarters.

Travel Food Services Limited (TFSL) has announced significant changes to its corporate governance structure following a successful postal ballot. Shareholders overwhelmingly approved amendments to the company's Articles of Association, granting specific nomination rights to major stakeholders.

New Director Nomination Rights

The special resolution introduces Articles 104A and 104B to TFSL's Articles of Association. These additions bestow director nomination rights upon two key entities:

1. SSP Asia Pacific Holdings Limited
2. Kapur Family Trust

Each entity now has the authority to nominate up to two directors to TFSL's board, subject to maintaining certain shareholding thresholds.

Shareholding Thresholds and Nomination Rights

The newly approved amendments establish a tiered system for nomination rights based on shareholding percentages:

This structure ensures that the nomination rights are proportional to the stakeholders' investment in the company.

Extension to Board Committees

The nomination rights extend beyond the main board to include various board committees, enhancing the influence of these major stakeholders in the company's decision-making processes.

Shareholder Approval Details

The postal ballot results revealed strong support for the amendments:

• 95.65% of the total valid votes were cast in favor of the resolution.
• 118,457,573 votes supported the changes, while 5,387,469 votes were against.

Additional Resolutions Passed

In the same postal ballot, shareholders also approved two other special resolutions:

1. Ratification of the Travel Food Services - Employee Stock Option Plan
2. Extension of the Employee Stock Option Plan benefits to employees of group companies, including subsidiaries, associates, and holding companies

Both these resolutions received over 96% votes in favor, demonstrating strong shareholder support for the company's employee incentive programs.

Implications for Corporate Governance

These amendments mark a significant shift in TFSL's corporate governance structure, potentially allowing for more direct representation of major stakeholders on the board. The changes aim to align the company's leadership more closely with its significant shareholders while maintaining a balance through the shareholding thresholds.

As Travel Food Services Limited implements these changes, stakeholders will be watching closely to see how the new nomination rights impact the company's strategic direction and decision-making processes in the future.